In the midst of the collapse of multiple fiat currencies worldwide, the cryptocurrency market seems to be going strong, leading investors to turn their gaze to digital assets like Bitcoin (BTC) and Ethereum (ETH) instead.
As it happens, investors in the United Kingdom and the European Union are selling their pounds (GBP) and euros (EUR) to purchase Bitcoin in record numbers, according to the data and charts published by crypto market intelligence platform Messari on September 29.
The platform explained that:
“As these individuals from the UK and EU see the value of their currency collapsing, they effectively selling the pound and euro for Bitcoin. If this were just a trade to capture the volatility, we would have seen similar spikes in May 2021 and certainly in March 2020.”
As per the chart that spans until September 27, the daily volume of Bitcoin purchased by EUR has reached 50,000 in the week between September 22 and 27, and the same figure is reported for BTC purchases made in Pound Sterling.
Trading fiat for Ethereum as well
At the same time, the crypto analytics platform said that investors are also trading in their EUR and GBP fiat for Ethereum, albeit at a smaller scale than Bitcoin. According to the tweet that Messari posted on September 30:
“Ethereum saw individuals from the UK and EU rotate their funds into ETH but not to the same extent as Bitcoin. Ethereum volumes spiked against GBP, but these peaks were similar to many seen on uneventful trading days in late 2020 and early 2021.”
The platform also posted similar charts as for Bitcoin versus GBP/EUR, stating that “Ether doesn’t see a similar bid as BTC on recent currency devaluations”:
Meanwhile, the Bitcoin and British pound trading volume on exchanges has hit a record high of $881 million as of September 26, outperforming the figure that has historically stood at around $70 million per day, as Finbold reported.
Bitcoin and Ethereum price analysis
At press time, the flagship digital asset is trading at $19,583, up 1.15% on the day and 1.69% across the previous week, as investors are opting for the ‘HODL’ strategy, which is hitting its five-year high despite market volatility.
According to CoinMarketCap data, the price of Ethereum stands at $1,346, representing an increase of 1.74% on the day, as well as 2.22% when compared to seven days ago, despite a drop in the number of new ETH addresses signaling a possible price correction in the future.
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